Forget to chase the following artificial intelligence (AI) Unicorn. Venture capitalists leak billions to speculative startups, nvidia(NASDAQ: NVDA) It continues to dominate the industry-powered infrastructure. The expected 9% annual return may not be thrilling, but it could be the smartest risk-adjusted investment in technology for the last decade.
According to Coatue Management, an American technology-focused investment firm, Nvidia’s market capitalization could rise from today’s $3.5 trillion to $5.6 trillion by 2030, meaning a combined annual growth rate of 9.6% from current levels. It is far from the recent overgrowth, but reflects a business that has matured in its role as the backbone of the AI economy.
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Nvidia is why Nvidia is a compelling purchase, even if it slows down its pace of growth.
Think of Nvidia apple Ai. Just as the iPhone represents great hardware backed by an inexplicable ecosystem, Nvidia has built something far more valuable than a fast chip. We have created a core operating system for AI.
The company’s Compute Unified Device Architecture (CUDA) software platform is the default language for AI development, with over 4 million developers currently being built into the ecosystem. Switching to a competitor means rewriting long-standing code and creating switching costs that will be stronger every day.
However, Nvidia has not remained dominated by software. The company is systematically expanding to all layers of its AI stack. DGX Cloud allows businesses to rent AI supercomputers hourly, democratizing access to large-scale computing power. The new enterprise platform will help businesses deploy AI without an army of data scientists.
The Omniverse platform runs everything from factory simulations to digital twins across the city, but the majority of car manufacturers currently rely on Nvidia’s drive platform for self-driving cars development.
This is not diversification for itself. Each new product will strengthen your core GPU business. Companies using NVIDIA for robotic simulations will naturally attract NVIDIA chips for their data centers. The network is combined with each customer.
Yes, there are 9% annual return sound pedestrians compared to Nvidia’s recent rocket rides. But consider mathematical reality. If quarterly revenues are already generated from a $3.5 trillion location, overgrowth is virtually impossible.
Importantly, this 9% comes with things that venture-backed AI startups cannot provide.
The company’s Blackwell architecture will be fully booked within months of its launch, with cargo spreading in the second half of 2025. In the most recent quarter, data center revenues rose 73% year-on-year to $39.1 billion, but total margins excluding one-off billing exceeded 70%. It is a type of pricing power that competitors can dream of. Additionally, $54 billion in cash and marketable securities allow Nvidia to survive any storm while continuing to invest aggressively.
However, there may be a lack of growth forecasts here. Nvidia doesn’t just sell more tips to the same customers. We are expanding the entire AI market.
Today, AI is primarily limited to high-tech giants and cutting-edge companies – not because of cost, but because of complexity. The push for NVIDIA to simplify deployment through easier tools, pre-trained models, and plug-and-play solutions removes technical barriers.
If all small businesses can implement AI without a team of engineers, the addressable market will not just grow – it will explode. Think of a local government that optimizes traffic patterns, a small manufacturer that predicts equipment failures, or a family physician who uses AI diagnostics. Market expansion opportunities warn competitive concerns.
Yes, nvidia trades on a Revenue (P/E) ratio from forward price 34-Premium based on traditional standards. And yes, Advanced Micro Devices It gains the ground like a cloud giant Microsoft and alphabet We have built our own AI chips. Meanwhile, US export restrictions have cut off a significant portion of China-related revenues, removing an estimated $8 billion in sales.
But what is the alternative? Bet on early stage AI startups with no profits, moats and unproven demand? Nvidia’s ratings aren’t cheap, but they reflect something rare in technology: durable domination.
Wall Street continues to search for the next big thing. But the best tech investments of the next decade may not come from stealth startups or buzzy IPOs. It is already here and hidden in front of you.
NVIDIA forecasts a yearly return of 9% and offers something unusual with its technology of scale, certainty and sustainable innovation. Others who play speculative AI continue to match their wealth with utility reliability and startup speed.
The AI revolution has not slowed down. It’s accelerating. From self-driving cars to digital twins, every breakthrough enhances Nvidia’s grip against the infrastructure that bolsters it all.
Sometimes the smartest moves aren’t chasing the next nvidia. We already own a reconstruction of the future and are just beginning.
Consider this before purchasing shares on Nvidia.
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Suzanne Frey, an executive at Alphabet, is a member of the board of directors of Motley Fool. George Budwell There are positions in Apple, Microsoft and Nvidia. Motley Fools introduces and recommends advanced microdevices, Alphabet, Apple, Microsoft, and Nvidia. Motley Fool recommends the following options: A $395 phone at Microsoft for January 2026 length and a $405 phone to Microsoft for January 2026 short term. To Motley’s fool Disclosure Policy.
